post by:
Donna Cohen
You’ve finally reached your ecommerce sales goals. Now what? It’s time to expand. Marketing is the key to this objective, but how can you market without the proper cashflow? It can be difficult to know exactly how to obtain funding for marketing campaigns, but we’re here to share the tricks of the trade. The results vary, depending on your unique business and history, but there is always someone willing to help you reach your goals. We’ll explain the different types of funding and how to win your lenders over.
When To Search For Funding
It’s time to search for marketing funding when your business is doing well, and you’re looking to expand. This is the point where your investment will pay off. You have the sales numbers you need to branch out and compete. And no matter how well you think you’re doing, you can do so much better with advertising. Funding will provide you with much-needed breathing room to plan and execute your goals. Here, we’ve listed the best financing options for you to consider.
Business Loans
There are a lot of steps to take when applying for a business loan. Although, it can be a beneficial option, as the finance limit is much higher than other types of loans. You will need to discuss your marketing strategy at length when working with them. They dictate your monthly spending and what you can spend it on.
Business Lines of Credit
Instead of receiving a one-time loan that you have to pay off monthly, you can get a line of credit. You can draw from this account whenever you need the extra money. Credit limits and interest rates range anywhere from low to high. This is perfect for consistent funding during those marketing campaigns.
Merchant Cash Advance
Merchant cash advances are great if you’re in need of quick cash for your goals. Unlike most loans, they won’t dictate how you spend the borrowed money. If you want to spend it on a big marketing campaign, then you are in the clear. It’s reimbursed with a percentage of every debit and credit card sale, so it’s simpler than ever to keep track of that loan.
Peer-To-Peer Funding
Peer-to peer funding is a group of people coming together to fund a particular project—your marketing campaign. There are several lending companies to choose from. The lenders review your business history and decide if they want to invest. Instead of giving away equity, you pay interest on the money you borrow, much like a traditional loan.
How To Get Funding
Lenders and investors want to know that they can trust you. This begins with a meeting. How do you convince them to lend you the money and keep them assured throughout the process? There are a few things you have to prepare for when reaching out to those lenders. New marketing strategies can make them nervous, so make sure you are confident when you market your marketing idea. Sound like a lot of work? It is! But it is well worth your time to grow a successful business.
Research
Research! You must know your business’s culture and what will draw the customers in. You can’t afford to guess…literally. Use statistics, surveys, and sales history to put together a confident plan of action. Create a realistic budget and timeline. No lender will work with you if you have outrageous expectations.
Align Goals
It’s easy enough to plan short-term, but investors want to know that these marketing strategies align with your core business goals. Seems simple enough, right? But most people don’t know their core goals. Figure this out before making a marketing plan, and especially before you approach others about funding.
Plan
It may seem obvious, but you need a plan if you are to get funding for marketing. Once you have figured out your long-term goals, then you can plan your short-term ones. And lenders want to see this. “Slow and steady wins the race.” Planning a step-by-step strategy that will ensure success in both the campaign and funding.
Check In
If you want consistent funding, then keep everyone updated on your success. If the company is talking about it, those funding you will hear about it, too. Plan meetings to update everyone and make adjustments along the way. It’s not enough to gain the funding. You have to keep it, as well.
Big Picture
It’s smart to start small with your campaign, but you don’t need to stay there. With more success, comes more funding. Take advantage and expand. Pay attention to statistics, so you know where to target. Things like this will help you develop, and pretty soon, your business will have grown past your initial goals.